Bloomberg says that JPMorgan Chase will allow institutional clients use Bitcoin and Ether as collateral for loans. By the end of the year, the new program should be up and running.
It will hire a third party to keep these digital assets safe. The project will be open to clients all over the world. This is a big step in the bank’s plan for cryptocurrency.
Starting with BlackRock’s iShares Bitcoin Trust, JPMorgan will let its trading and wealth-management clients utilize bitcoin exchange-traded funds (ETFs) as collateral for loans.
This is part of a bigger plan to let clients borrow money using their crypto assets and to integrate these assets in the net worth evaluations of wealth-management clients.
The move reveals that the bank’s perspective on cryptocurrencies has changed, especially since Jamie Dimon is now in charge.
